Episode Title: Year-End Reminder: New RMD Age Requirements and SECURE 2.0 Updates

Episode Date: December 10, 2024

Episode Summary:

In this episode, we break down the latest IRS announcements regarding Required Minimum Distributions (RMDs) from retirement accounts. With the passing of the SECURE 2.0 Act, the age to begin taking RMDs has changed, and certain Roth accounts receive new treatment. We’ll cover key deadlines, penalties for missed withdrawals, and where to find official IRS guidance and calculation tools—ensuring you stay informed and compliant as the year-end approaches.

Key Takeaways:

• New RMD Age Threshold: Account owners turning 73 in 2024 have until April 1, 2025, to take their first RMD.
• RMDs & Retirement Accounts: Traditional IRAs, most employer-sponsored plans (like 401(k) and 403(b)), and inherited accounts are subject to RMD rules—though rules differ by plan type.
• SECURE 2.0 Act Highlights:
• Delays the start of RMDs to age 73.
• Eliminates RMDs for Designated Roth accounts in 401(k) and 403(b) plans while the original owner is alive (effective 2024).
• Penalties for Missed RMDs: The penalty for failing to take the full RMD on time is generally 25%, reduced to 10% if corrected within two years.
• Inherited Accounts: Beneficiaries may need to follow special RMD rules based on their relationship to the deceased, the account type, and when the account owner passed away.
• Resources & Tools: IRS.gov provides RMD worksheets, forms, and detailed FAQs, including Publication 559 for estate-related guidance.

Action Items:

• Check if you need to take an RMD by the end of the year or by April 1, 2025, if turning 73 in 2024.
• Review your retirement accounts to ensure all RMD requirements are met and calculate distributions if needed.
• Visit IRS.gov for official guidance, tools, and detailed FAQs.

Additional Resources:

• IRS RMD FAQs: IRS.gov RMD FAQs
• Form 5329: To report missed RMDs or additional taxes
• Publication 559: Survivors, Executors and Administrators for estate-related guidance

Disclaimer:

This information is for educational purposes and not a substitute for professional financial or tax advice. Always consult a qualified tax advisor for guidance specific to your situation.

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